Allfirst Reports Net Income of $97.4 Million for the First Six Months of 2001, With a 10% Increase in Second Quarter Earnings.Business Editors BALTIMORE--(BUSINESS WIRE)--Aug. 1, 2001 Allied Irish Banks Allied Irish Banks, p.l.c. (AIB) (Irish: Bainc-Aontas Éireann),ISEQ: ALBK, LSE: ALBK, NYSE: AIB, FWB: AIB is a commercial bank based in Ireland not to be mistaken for Anglo Irish Bank. AIB is one of the so called Big Four commercial banks in Ireland. p.l.c. (AIB AIB n abbr (BRIT) (= Accident Investigation Bureau) → oficina de investigación de accidentes AIB n abbr (Brit) (= Accident Investigation Bureau) → ) today announced that its wholly owned U.S. subsidiary, Allfirst Financial Inc. (Allfirst), reported net income to common shareholders of $97.4 million for the half year ended June June: see month. 30, 2001 which compares to $92.0 million in the first half ended June 30, 2000, a growth rate of 6%. Net income to common shareholders for the quarter ended June 30, 2001 was $51.6 million representing growth of 10% over the quarter ended June 30, 2000. In May 2001, Allfirst completed the acquisition of Community Counselling Service Co., Inc. (CCS (1) (Common Channel Signaling) A communications system in which one channel is used for signaling and different channels are used for voice/data transmission. Signaling System 7 (SS7) is a CCS system, also known as CCS7. See SS7. ). CCS, in support of Allied Irish America's Not for Profit division, provides fund raising services to Not for Profit organizations. The acquisition was immediately accretive to earnings. Allfirst's first half 2001 results include revenue growth of 1.2% and expense growth of 1.6% attributed to CCS. For comparative purposes, CCS revenue and expenses have been excluded from the commentary below. Allfirst's total revenues grew 5% in the first half of 2001 compared to last year. Net interest income grew 2.2% supported by higher loan product margins. This contributed to an improvement in the net interest margin to 3.54%, up 15 basis points over the same period last year. The company has curtailed its exposure to indirect retail lending and residential mortgages. Loan balances excluding these portfolios were flat compared to December December: see month. 31, 2000 due to changes in business mix and a slowing economy. Core deposits at June 30, 2001 grew 2% on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis from December 31, 2000. Noninterest income grew 9% during the first half, led by an 18% increase in electronic banking fees, an 11% rise in deposit service charges, and 8% growth in all other noninterest income categories despite the impact of the weaker stock market on trust and investment advisory fees. The declining rate environment favored commercial mortgage banking income, which grew by 104%. "We are pleased with the first half results and particularly the second quarter outcome," said Susan SUSAN Smallest Univalue Segment Assimilating Nucleus SUSAN Sub Saharan African Network SUSAN Smart Ultrasonic System for Aircraft NDE C. Keating Keating may refer refer to the following: People For people with the surname Keating, see Keating (surname) Places Several places in the US:
Noninterest expenses increased by 8% compared to the first half of 2000 reflecting planned investments in retail / business banking and wealth management. Salaries and other personnel costs included higher pension and healthcare costs which represented 3% of the overall growth in noninterest expense for the first half of 2001 compared to the prior year. Asset quality remains strong with a decrease of $21 million in nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. from December 31, 2000 to June 30, 2001. Nonperforming assets as a percentage of loans and OREO are 0.82%, down from 0.98% at December 31, 2000. The allowance for loan and lease losses at June 30, 2001 of $153 million represented 223% of nonperforming loans and 1.45% of total loans. Allied Irish Banks, p.l.c. ("AIB") the parent company of Allfirst, today also announced its interim results for the half-year ended June 30, 2001. AIB reported net income of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 463m, representing a 12% increase over the corresponding period. Adjusted earnings per share was EUR 55.4c, up 11% and a return on equity of 20.4% was achieved. The Board has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. an interim dividend payable on September September: see month. 28, 2001 of EUR 15.4c per share, an increase of 14%, to shareholders on the Company's register of members at the close of business on August 10, 2001. Allfirst Financial Inc. is a regional, diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services company headquartered in Baltimore Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. , MD, offering a full range of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. including banking, trust, investment and insurance to retail, business and commercial customers. Its banking subsidiary, Allfirst Bank, operates 258 bank branches and 588 ATMs throughout Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). , Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. D.C., northern Virginia Northern Virginia (NoVA) consists of Arlington, Fairfax, Loudoun, and Prince William counties and the independent cities of Alexandria, Falls Church, Fairfax, Manassas, and Manassas Park. and Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). . Allfirst Financial Inc.'s assets were $17.9 billion as of June 30, 2001. Information about Allfirst Financial is available at www.allfirst.com. Certain information included in this press release, other than historical information, may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The forward-looking statements are identified by terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms. Actual results may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: global, national and regional economic conditions; levels of market interest rate; credit or other risks of lending and investment activities; competitive and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. factors; and technological change.
ALLFIRST FINANCIAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
2001 2000 2001 2000
---- ---- ---- ----
(in thousands)
Interest Income
Interest and fees on
loans and leases $189,412 $213,788 $394,116 $419,751
Interest and
dividends on
investment
securities:
Taxable 54,558 55,369 110,303 111,327
Tax-exempt 6,174 5,461 12,250 10,887
Dividends 1,824 3,578 6,905 5,302
Interest on loans
held-for-sale 736 409 1,416 730
Other interest income 312 904 770 1,799
----------- ----------- ----------- -----------
Total interest
and dividend
income 253,016 279,509 525,760 549,796
Interest Expense
Interest on deposits 88,354 97,357 192,025 192,028
Interest on Federal
funds purchased and
other short-term
borrowings 20,208 35,603 46,332 66,160
Interest on long-term
debt 15,231 21,254 32,247 41,986
----------- ----------- ----------- -----------
Total interest
expense 123,793 154,214 270,604 300,174
----------- ----------- ----------- -----------
Net Interest Income 129,223 125,295 255,156 249,622
Provision for loan
and lease losses 7,759 9,843 15,509 16,875
----------- ----------- ----------- -----------
Net Interest Income
After Provision for
Loan and Lease
Losses 121,464 115,452 239,647 232,747
----------- ----------- ----------- -----------
Noninterest Income
Service charges on
deposit accounts 28,284 24,591 53,800 48,588
Trust and investment
advisory income 20,840 21,995 43,241 43,827
Electronic banking
income 8,525 7,356 15,683 13,341
Mortgage banking
income 5,934 3,065 10,726 5,268
Other income 33,100 28,840 60,134 52,525
Securities gains, net 187 143 421 175
----------- ----------- ----------- -----------
Total noninterest
income 96,870 85,990 184,005 163,724
----------- ----------- ----------- -----------
Noninterest Expense
Salaries and other
personnel costs 79,244 69,086 155,320 135,681
Equipment costs 11,645 11,076 23,042 22,932
Occupancy costs 9,066 9,038 18,471 18,550
Postage and
communications 5,045 4,945 9,558 10,059
Advertising and
public relations 4,792 3,972 7,087 6,958
Lending and
collection 1,185 1,427 2,535 3,361
Other operating
expenses 20,975 18,438 40,273 34,403
Intangible assets
amortization expense 11,764 11,974 23,178 23,836
----------- ----------- ----------- -----------
Total noninterest
expenses 143,716 129,956 279,464 255,780
----------- ----------- ----------- -----------
Income before income
taxes 74,618 71,486 144,188 140,691
Income tax expense 22,954 24,678 46,563 48,530
----------- ----------- ----------- -----------
Net Income 51,664 46,808 97,625 92,161
Dividends on
preferred stock 102 102 203 203
----------- ----------- ----------- -----------
Net Income to Common
Shareholders $51,562 $46,706 $97,422 $91,958
=========== =========== =========== ===========
ALLFIRST FINANCIAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
June 30, December 31,
2001 2000
---- ----
(in thousands)
Assets
Cash and due from banks $ 803,329 $ 933,969
Interest bearing deposits in other banks 2,610 1,273
Trading account securities 6,151 4,222
Federal funds sold and securities purchased
under resale agreements 249,000 44,430
Investment securities available-for-sale 4,299,191 4,375,037
Loans held-for-sale 62,918 57,255
Loans, net of unearned income of
$194,620 and $221,128:
Commercial 3,739,393 3,828,304
Commercial real estate 2,309,264 2,362,564
Residential mortgage 540,219 640,765
Retail 2,833,575 2,856,520
Commercial leases receivable 654,037 665,649
Retail leases receivable 292,053 353,364
Foreign 186,208 201,882
----------- -----------
Total loans, net of unearned income 10,554,749 10,909,048
Allowance for loan and lease losses (152,539) (152,539)
----------- -----------
Loans, net 10,402,210 10,756,509
----------- -----------
Premises and equipment 222,879 205,611
Due from customers on acceptances 4,146 3,791
Intangible assets 798,580 792,782
Other assets 1,019,122 1,233,033
----------- -----------
Total assets $17,870,136 $18,407,912
=========== ===========
Liabilities and Stockholders' Equity
Domestic deposits:
Noninterest bearing deposits $2,928,667 $2,966,832
Interest bearing deposits (excluding
large denomination time deposits) 6,990,858 6,848,850
----------- -----------
Total Core Deposits 9,919,525 9,815,682
Large Denomination Time Deposits 2,120,689 2,553,021
Interest bearing deposits in foreign
banking office 87,922 308,879
----------- -----------
Total deposits 12,128,136 12,677,582
Federal funds purchased and securities
sold under repurchase agreements 1,337,541 1,112,210
Other borrowed funds, short-term 521,455 540,386
Bank acceptances outstanding 4,146 3,791
Accrued taxes and other liabilities 842,820 1,117,127
Long-term debt 1,010,955 996,010
----------- -----------
Total liabilities 15,845,053 16,447,106
----------- -----------
Redeemable Preferred Stock 8,721 8,590
Minority interest 104 110
Common stockholders' equity 2,016,258 1,952,106
----------- -----------
Total liabilities, redeemable preferred
stock, minority interest and
stockholders' equity $17,870,136 $18,407,912
=========== ===========
Allfirst Financial Inc.
Summary Income Statement Six Months Ended
(taxable equivalent basis, in thousands) June 30,
-----------------------
2001 2000
---- ----
Net interest income $263,930 $257,578
Securities gains 421 175
Noninterest income 183,584 163,549
----------- -----------
Total Revenue 447,935 421,302
Provision for loan and lease losses 15,509 16,875
Intangible asset amortization 23,178 23,836
Other noninterest expenses 256,286 231,944
----------- -----------
Income before taxes 152,962 148,647
Income taxes 55,337 56,486
----------- -----------
Net income 97,625 92,161
Preferred dividends 203 203
----------- -----------
Net income to common shareholders $ 97,422 $ 91,958
=========== ===========
Summary Balance Sheet
(Average balances, in millions)
Investment securities $4,331 $4,353
Loans and leases, net of unearned income 10,637 10,852
Loans and leases, net of unearned income
(ex. curtailed businesses) (3) 9,079 8,984
Earning assets 15,043 15,284
Intangible assets 789 829
Total assets 17,699 17,575
Total deposits 11,960 11,644
Shareholders equity 1,976 1,771
Common shareholders equity 1,976 1,771
Performance Indices
Return on average common shareholders equity 9.94% 10.44%
Return on average assets 1.11% 1.05%
Net interest margin 3.54% 3.39%
Efficiency ratio 62.45% 60.74%
Net charge-offs (in thousands) $15,509 $16,875
as a % of loans and leases 0.29% 0.31%
Performance Indices - Tangible basis
Return on average tangible common
stockholders equity (1) 19.95% 23.90%
Return on average tangible assets (2) 1.42% 1.37%
Efficiency ratio, excluding intangible
asset amortization 57.27% 55.08%
Allfirst Financial Inc.
June 30, December 31,
2001 2000
---- ----
Balance Sheet Highlights
(in millions)
Investment securities $4,299 $4,375
Loans and leases, net of unearned income 10,555 10,909
Loans and leases, net of unearned income
(ex. curtailed businesses) (3) 9,162 9,196
Earning assets 15,174 15,391
Intangible assets 799 793
Total assets 17,870 18,408
Deposits 12,128 12,678
Common Shareholder's equity 2,016 1,952
Capital Ratios
Total equity to assets ratio (period end) 11.28% 10.60%
Tangible equity to assets ratio (period end) 7.30% 6.64%
Risk based capital:
Tier 1 capital ratio 10.44% 9.98%
Total capital ratio 13.43% 13.04%
Leverage ratio 9.60% 9.19%
Asset Quality
(in millions)
Allowance for loan and lease losses 153 153
Allowance for loan and lease losses
as a % of loans and leases 1.45% 1.40%
Allowance for loan and lease losses
as a % of nonperforming loans 223% 191%
Nonperforming loans $69 $80
Nonperforming assets $87 $108
Nonperforming assets as a % of total assets 0.49% 0.58%
Nonperforming assets as a % of loans, leases
and other foreclosed properties 0.82% 0.98%
Other Data
Full time equivalent headcount 5,741 5,597
Full service branch offices 258 261
ATMs 588 585
(1) Tangible average common shareholders equity is average common
shareholders equity less average goodwill and other intangible
assets resulting from purchase business combinations. The
deduction for other intangible assets, which are primarily core
deposit intangibles, is net of related deferred income taxes.
(2) Tangible average assets are net of average goodwill and other
intangible assets resulting from purchase business combinations.
Returns are calculated by deducting goodwill amortization and
other intangible assets related to purchase business combinations
from net income. Amortization of other intangible assets is net of
related income taxes.
(3) Curtailed lending businesses include indirect lending and
residential mortgage lending.
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